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Steve Moore (Economist, China & U.S Revisit Trade Talks)

Sep 13, 2018|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

The financial exchange. Is all ordering and and also now in West Palm Beach, Florida. Check out our website at financial exchange showed Doug come and find the station closest to you. This is the financial exchange radio network. We're broadcasting to save lives from. Arnold restaurant clam bar in east ham Massachusetts and now we're joined by Steve work. Good friend of Larry Kudlow and working at The Heritage Foundation these days Steve power area. Have you guys pay to view it idiotic I mean why I've never been to a better. But you are. Steve what do you hope and war in these conversations that were announced between China and the United States and by the way it looks to me. As if these negotiations are coming at the prodding Butler cut. Well you know that their system big the big enchilada for trop as it is. You know getting a deal with China. That is good for American workers could armor companies are doing a lot and I think that this is. If it swings back and forth like a pendulum in terms of you know some days it looked like they're making progress they're based not. But I'll say couple things of that that's number one no Donald Trump as they view it packet back now to chat. You know it's China want to trade war and after it but that trump or not. Back down street feels very strongly that that China is that act or an international scene and quite frankly accent this side. China seems to be making some concessions they're coming as it looks like the habit deal worth at least you know some negotiations in the next couple weeks. That would. You know about China making you know concessions. But you never know what Peja and so it's a Dicey situation I would say that it looks better today than it did a couple of months ago because trump has getting trade deals out on what other countries Mexico deal done. He's got them I think in the next week to have a deal about. That's like the progress with EU and it gets more of these other deals done it it isolates China makes it difficult for China you. Sustained and there are bad behavior or else they're going to be that odd man out. Steve you mentioned at the top it you know the economy's hitting on all eight cylinders he got seven million jobs open in only six point 200 workers to fill those jobs. It does raise the Specter though worker shortages and and I know you're having conversations at The Heritage Foundation. About worker shortage you've got. Businesses coming views saying hey we need more workers where are we going to get the howdy result that would. What advice would you give the White House as a relates to some of these worker shortages or reference. Well it's great question and I think you know what I'm apps can we keep up with its. It's you know frantic pace of growth. And it's amazing to meet in ice how to present. But the caller or stolen and sang and out is that were better at that age but it would work. And that's working more quickly and you know you just found that it is not yet but you know pursue other showed what happened when an old pro business. You know America's first president again and that White House. Which you're right you know the thing that I'm most concerned about it terms of keeping up netstat space of pro. You know asserted 3% last year now last couple quarters it's been 4%. The question is Webber. Or not. We have enough workers to fill the jobs added. You know to to get this done so we have more people in the workforce we need to do several things first ball. A little bit more long term we gotta just recruit training of our workers and I in our education system is. Well. You know we're we're graduating kids match a site's global college you don't know about it do expect. And that's a big problem I mean New Delhi it's gradually worked it out. History of political science and you know ethnic studies degrees. But they're not able to have bill that jobs in the work force and such a tragedy that's second of all we need to. We need more immigrants we need more skills skilled immigrants to come into the country and felt some of these apps and these are talented people are gonna go a while further going to be people be working at. You know contribute to our economy and that's true we need service workers we need agricultural workers and our tech workers. And that that's an important thing. And the third while we need to get. People awful well there're the United States into work and I love Trump's idea of these networks are gonna get the statue of Medicaid you're gonna get. Public housing benefits. We're gonna require something for you in return we're not getting rid of your welfare benefits and actually go hungry or almost. But we are gonna expect you to do something and that is either gonna Jabber that training so you can be productive senate that and that would be helpful as well. Well for the first time in history Steve we've seen people come off the rolls of Social Security disability. Yeah go back into work I mean so that shows you that the job market struck you touched on immigration. Yeah that's your that's likely on the third rail enemy they. Well look this interest in your exactly right which him. Huge decline and people want so Oscar disability. And shut chart couple things one has yet. Disability actually became a new well under Obama because they didn't really shut whether there you know we all know others matchup about a lot of the disability and everyone knows somebody's got disability however about back or higher that's about ailment and it you know. At that a lot of people are picking it up or they do have ailment that doesn't that's sort of about the war and about the whereabouts. Waited you know to rehabilitate yourself you know get back in the workforce sit around and do not act and number chill. You know that shows that you know when you get out healthy job market people will move and the into the workforce back. We have pretty good evidence that chose that. Let's Obama jacked up the value of the ballot that's the food stamps Medicaid disability. Unemployment benefits are in all of these. Panoply programs. You know people. You know I don't gain that much income from work or because they're getting so much I hate to leave benefits from the government and that's a problem because. Well there has peaked in the place of work for millions of error. It sure has we did calculations Stephen this is a few years ago. And in New England we figured out that welfare pays about seventeen dollars an hour. Yep yep. And I did that study you know entertainment started back in the mid. Ninety's that showed that. You know people welfare in this attack in the mid nineties the well it was bank like. 89 dollars and most power that was you know that forty years ago so out right you can. A lot of people don't have to get out while circus and by the way don't forget that's treachery. I. Extra benefits and so in a lot of those people probably are working. They're getting the welfare benefits they are working but the working you know. Option table by whether or not reported net income so they're getting checks are gonna protect working and they are getting while Urbana senate and I'm. So you know the best thing to do require them to work certify that they aren't showing up for the job. And you'll get more people more force which also got a lot last brought. Of the ideas and we appreciate the time sale little Larry force the road crew cites the Steve Moore from The Heritage Foundation and you know technique we go back to that tax reform package and I know you're not crazy about all the a lot of people in the room today were not eight and they're looking at their property tax bills in like can't deduct my property taxes anymore can't deduct all of my property taxes bills popular happy. With that some components. Of the tax package but I'll say that corporate package they got right and I know that Steve Theriot worked. Wallet for the eve party scene I think the number that we got at the end of Bob August somewhere in the ballpark like 300 billion dollars has flowed back into the US that was previously held overseas. On C you have big chunks of money they're coming back in. In in again there's there's two different issues I think that need to be looked out with tax reform number one is they would what are you doing to boost the economy and there's no doubt you have money that's coming back in. The big question I think a lot of people have a say what's the distribution of this going to be. That's a question and I think still is outstanding but there's no doubt it has caused a significant amount of money to flow back into the economy he can't question.